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Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
Hoverson Cable TV ) File No. EB-02-TS-526
Operator of Cable Systems in: )
Cogswell, North Dakota )
Rutland, North Dakota )
Tower City, North Dakota )
Veblen, South Dakota )
Request for Waiver of Section 11.11(a) of the )
Commission's Rules )
Adopted: October 29, 2002 Released: November 1,
By the Chief, Technical and Public Safety Division, Enforcement
1. In this Order, we grant Hoverson Cable TV (Hoverson
Cable'') temporary, 36-month waivers of Section 11.11(a) of
the Commission's Rules (``Rules'') for the four above-
captioned cable television systems. Section 11.11(a) requires
cable systems serving fewer than 5,000 subscribers from a
headend to either provide national level Emergency Alert
System (``EAS'') messages on all programmed channels or
install EAS equipment and provide a video interrupt and audio
alert on all programmed channels and EAS audio and video
messages on at least one programmed channel by October 1,
2. The Cable Act of 1992 added new Section 624(g) to the
Communications Act of 1934 (``Act''), which requires that
cable systems be capable of providing EAS alerts to their
subscribers.2 In 1994, the Commission adopted rules requiring
cable systems to participate in EAS.3 In 1997, the Commission
amended the EAS rules to provide financial relief for small
cable systems.4 The Commission declined to exempt small cable
systems from the EAS requirements, concluding that such an
exemption would be inconsistent with the statutory mandate of
Section 624(g).5 However, the Commission extended the
deadline for cable systems serving fewer than 10,000
subscribers to begin complying with the EAS rules to October
1, 2002, and provided cable systems serving fewer than 5,000
subscribers the option of either providing national level EAS
messages on all programmed channels or installing EAS
equipment and providing a video interrupt and audio alert on
all programmed channels and EAS audio and video messages on at
least one programmed channel.6 In addition, the Commission
stated that it would grant waivers of the EAS rules to small
cable systems on a case-by-case basis upon a showing of
financial hardship.7 The Commission indicated that waiver
requests must contain at least the following information: (1)
justification for the waiver, with reference to the particular
rule sections for which a waiver is sought; (2) information
about the financial status of the requesting entity, such as a
balance sheet and income statement for the two previous years
(audited, if possible); (3) the number of other entities that
serve the requesting entity's coverage area and that have or
are expected to install EAS equipment; and (4) the likelihood
(such as proximity or frequency) of hazardous risks to the
requesting entity's audience.8
3. Hoverson Cable filed a request for temporary, 36-month
waivers of Section 11.11(a) for the four captioned cable
systems on September 17, 2002. In support of its waiver
request Hoverson Cable states that these cable systems serve
between 20 and 64 subscribers. Based on price quotes provided
by EAS equipment manufacturers, Hoverson Cable estimates that
it would cost approximately $40,000 to install EAS equipment
at these systems. Hoverson Cable asserts that this cost will
impose a substantial financial hardship on it and provides its
financial statements for 1999, 2000 and 2001 in support of
this assertion. In addition, Hoverson Cable submits that its
subscribers will continue to have ready access to national EAS
information from other sources, including its cable systems.
In this regard, Hoverson Cable notes that its subscribers
currently have access to national EAS messages on about three-
quarters of all programmed channels. Hoverson Cable further
indicates that subscribers will have access to EAS information
through over-the-air reception of broadcast television and
4. Based upon our review of the financial data and other
information submitted by Hoverson Cable, we conclude that
temporary, 36-month waivers of Section 11.11(a) for the four
captioned cable systems are warranted.9
5. We note that the Commission recently amended the EAS
rules to permit cable systems serving fewer than 5,000
subscribers to install FCC-certified decoder-only units,
rather than both encoders and decoders, if such a device
becomes available.10 Based on comments from equipment
manufacturers, we anticipate that such a decoder-only system
could result in significant cost savings to small cable
6. Accordingly, IT IS ORDERED that, pursuant to Sections
0.111, 0.204(b) and 0.311 of the Rules,12 Hoverson Cable TV IS
GRANTED waivers of Section 11.11(a) of the Rules until October
1, 2005 for the four captioned cable television systems.
7. IT IS FURTHER ORDERED that Hoverson Cable TV place a
copy of this waiver in its systems files.
8. IT IS FURTHER ORDERED that a copy of this Order shall
be sent by Certified Mail Return Receipt Requested to counsel
for Hoverson Cable TV, Christopher C. Cinnamon, Esq., Cinnamon
Mueller, 307 North Michigan Avenue, Suite 1020, Chicago,
FEDERAL COMMUNICATIONS COMMISSION
Joseph P. Casey
Chief, Technical and Public Safety
1 47 C.F.R. § 11.11(a).
2 Cable Television Consumer Protection and Competition Act of
1992, Pub. L. No. 102-385, § 16(b), 106 Stat. 1460, 1490 (1992).
Section 624(g) provides that ``each cable operator shall comply
with such standards as the Commission shall prescribe to ensure
that viewers of video programming on cable systems are afforded
the same emergency information as is afforded by the emergency
broadcasting system pursuant to Commission regulations ....'' 47
U.S.C. § 544(g).
3 Amendment of Part 73, Subpart G, of the Commission's Rules
Regarding the Emergency Broadcast System, Report and Order and
Further Notice of Proposed Rule Making, FO Docket Nos. 91-171/91-
301, 10 FCC Rcd 1786 (1994) (``First Report and Order''),
reconsideration granted in part, denied in part, 10 FCC Rcd 11494
4 Amendment of Part 73, Subpart G, of the Commission's Rules
Regarding the Emergency Broadcast System, Second Report and
Order, FO Docket Nos. 91-171/91-301, 12 FCC Rcd 15503 (1997)
(``Second Report and Order'').
5 Id. at 15512-13.
6 Id. at 15516-15518.
7 Id. at 15513.
8 Id. at 15513, n. 59.
9 The 36-month waivers will extend from October 1, 2002 until
October 1, 2005. We clarify that the waivers we are granting
also encompass the EAS testing and monitoring requirements.
10 Amendment of Part 11 of the Commission's Rules Regarding
the Emergency Alert System, EB Docket 01-66, FCC 02-64 at ¶ 71
(released February 26, 2002).
11 One manufacturer estimated that an EAS decoder-only system
can reduce the cost by 64% over what a cable operator would spend
for an encoder/decoder unit. Id. at ¶ 70.
12 47 C.F.R. §§ 0.111, 0.204(b) and 0.311.